On Wednesday at 2:48 PM (Bangkok time), the share price of Thai Union Group Public Company Limited (SET: TU) surged by 4.88% or THB 0.60 to THB 12.90, with a trading value of THB 316.39 million.
TU has announced via the Stock Exchange of Thailand (SET) that the Board of Directors Meeting No. 8/2024 dated 25 December 2024 has resolved to approve the share repurchase for financial management purposes.
The share repurchase will cap at THB 3,000 million, with a limit of 200 million shares to be bought back, constituting a maximum of 4.49 percent of the total paid-up capital. The buyback window is set between January 2, 2025, and June 30, 2025.
Kingsford Securities noted the positive impact of Thailand’s recent export data on AAI, ITC, TU, and COCOCO. The country’s customs-cleared exports registered an 8.2% year-on-year growth in November, aligning with market projections of approximately 7-9%. Moreover, the 11-month data revealed a 5.1% expansion. The Commerce Ministry anticipates a further 5.2% increase in exports for 2024, potentially achieving a historic milestone of $300 billion.
In addition, Land and Houses Securities highlighted TU’s anticipated profit growth in the 4Q24, with expectations for gains both quarter-on-quarter and year-on-year. The positive outlook is attributed to increasing demand in the animal feed and processed food sectors, leading to a forecast of 10% year-on-year increase in TU’s full-year earnings for 2024.
Meanwhile, the global minimum tax of 15% is anticipated to marginally impact TU’s profits in 2025. Despite this challenge, the analyst foresees continued growth in the company’s profitability and has issued a ‘BUY’ recommendation, establishing a target share price of THB 17.10 per share.
